SHREE MAHARAJA ELECTRICALS vs. INCOME-TAX OFFICER, WARD-1, ICHALKARANJI AND ORS

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WP/14762/2024HC BombayHCBM07052749202429 July 2025Bench: HON'BLE SHRI JUSTICE B.P. COLABAWALLA,HON'BLE SHRI JUSTICE FIRDOSH PHIROZE POONIWALLA3 pages
AI SummaryRemanded

What did the High Court hold?

The Bombay High Court held that the issue raised by the Petitioner is squarely covered by its own Division Bench decision in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. The Court stated that it is bound to follow its own precedent. Consequently, the Court set aside the impugned Notice issued under Section 148 of the Income Tax Act, 1961, and all consequential proceedings or orders. The Court granted liberty to the Revenue to revive the Writ Petition if the decision in Hexaware Technologies Ltd. is set aside by the Hon'ble Supreme Court. The Court clarified that revival can be sought by filing a Praecipe, and if the Supreme Court dismisses the SLP, there would be no question of revival. If revived, the petition would be decided on its merits, considering other issues raised.

What were the facts?

The petitioner, Shree Maharaja Electricals, filed a Writ Petition challenging a Notice issued under Section 148 of the Income Tax Act, 1961. The petitioner argued that the notice was issued by the Jurisdictional Assessing Officer, whereas the law mandates it should be issued by a Faceless Assessing Officer. This procedural defect, according to the petitioner, renders the notice invalid. The assessment year(s) are not explicitly stated. The impugned action is the Section 148 notice. The authority that passed the order under challenge is not specified, but the notice was issued by the Jurisdictional Assessing Officer. The amount in dispute is not stated. The procedural history involves the issuance of the notice and the subsequent filing of the writ petition.

What were the issues?

1. Whether the Notice issued under Section 148 of the Income Tax Act, 1961, is invalid for having been issued by the Jurisdictional Assessing Officer instead of the Faceless Assessing Officer, as mandated by law? Assessee's Contention: The Petitioner contends that the issuance of the Section 148 Notice by the Jurisdictional Assessing Officer, when the law requires it to be issued by a Faceless Assessing Officer, is a fatal defect and warrants quashing of the notice. The Petitioner relies on the decision of a Division Bench of the Bombay High Court in Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. Revenue's Contention: The Revenue acknowledges that the issue is concluded by the Hexaware Technologies Ltd. judgment. However, it states that this judgment has been challenged before the Hon'ble Supreme Court, which is likely to hear the matter soon. The Revenue concedes that there is no stay on the Hexaware Technologies Ltd. judgment.

Which sections of the Income-tax Act were involved?

Section 148

AI-generated summary — verify with the full judgment below

46-14762-2024-CWP=.doc

IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO. 14762 OF 2024 Shree Maharaja Electricals .. Petitioner Versus Income Tax Officer, Ward – 1, Ichalkaranji & Ors. .. Respondents Ms. Rutuja Pawar a/w Mr. Hetal Laghave, Ms. Sneha More, Advocates for the Petitioner. Mr. Arjun Gupta, Advocates for the Respondents.

CORAM : B. P. COLABAWALLA & FIRDOSH P. POONIWALLA, JJ. DATE : JULY 29, 2025. P. C. 1. Rule. Respondents waive service. With the consent of the parties, Rule made returnable forthwith and heard finally. 2. The above Writ Petition interalia challenges the Notice issued under Section 148 of the Income Tax Act, 1961 on various grounds. One of the grounds is that the Notice has been issued by the Jurisdictional Assessing Officer when the law mandates that it has to be issued by the Faceless Assessing Officer. This is a fatal defect and therefore the Notice has to be quashed, is the argument of the Petitioner. Page 1 of 3 JULY 29, 2025 Uday S. Jagtap UDAY SHIVAJI JAGTAP Digitally signed by UDAY SHIVAJI JAGTAP Date: 2025.08.02 12:27:58 +0530

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3.

It is the Petitioners’ contention that this issue is squarely covered by a decision of a Division Bench of this Court in the case of Hexaware Technologies Ltd. V/S Assistant Commissioner of Income-tax, Circle 15(1)(2) [(2024) 162 taxmann.com 225 (Bombay)]. 4. On the other hand, the learned advocate appearing on behalf of the Revenue stated that though it is true that this issue is concluded by the decision in Hexaware Technologies Ltd (supra), the said decision has been challenged before the Hon’ble Supreme Court, and the Hon’ble Supreme Court is likely to take up the matter immediately on re-opening. The learned Counsel for the Revenue has fairly stated that there is no stay to the judgment in Hexaware Technologies Ltd (supra). 5. Considering these facts, we do not propose to keep the matter pending in this Court. Once it is fully covered by the decision in Hexaware Technologies Ltd (supra) we are bound to follow it. 6. We accordingly set aside the impugned Notice issued under Section 148 and all other proceedings/orders emanating therefrom. Page 2 of 3 JULY 29, 2025 Uday S. Jagtap

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7.

We however grant liberty to the Revenue to revive the above Writ Petition in the event the decision in Hexaware Technologies Ltd (supra) is set aside by the Hon’ble Supreme Court on this issue. We make it clear that it will not be necessary for the Revenue to file a separate Interim Application to seek a revival of this Petition and the same can be done simply by moving a Praecipe before this Court. It is needless to clarify that if the Hon’ble Supreme Court dismisses the SLP challenging the decision in Hexaware Technologies Ltd (supra), there would be no question of any revival. 8. We also make it clear that once the Petition is revived and restored, the same would have to be decided on its own merits considering that several other issues are also raised challenging the Notice issued under Section 148. 9. Rule is accordingly made absolute and the Writ Petition is also disposed of in terms thereof. However, there shall be no order as to costs. 10. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this order. [FIRDOSH P. POONIWALLA, J.] [B. P. COLABAWALLA, J.] Page 3 of 3 JULY 29, 2025 Uday S. Jagtap

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